Blue Apron reports major loss despite customer growth

Blue Apron Earnings What to Watch

Boasting a price of $6.24, Blue Apron (NYSE:APRN) traded -17.63% lower on the day. Analysts were actually holding out for slightly less, but it's still awful growth for a company that grew its top line by 42% in the first quarter and 133% for all of 2016.

Blue Apron (NYSE:APRN) had the ideal opportunity to prove the growing number of naysayers wrong by blowing them away with its first quarterly report as a public company on Thursday.and it just didn't happen. The mean target of $10.00 should be compared with the price when the stock was languishing around $5.70 a share.

The challenge for Blue Apron has been that as the meal-kit preparer boosts sales, it has been spending more to acquire and then retain its new customers. They set a "buy" rating and a $12.00 target price on the stock. The analyst recommendations from a month ago are 0 Buy, 0 Strong Buy, 0 Sell, 1 Hold and 0. Its new post-IPO range is $5.03 to $11.00. The company has market cap of $1000.00 million. The company has recorded a 50-day moving average of $7.18 and a 200-day moving average of $7.18. It also comes in above analysts' revenue estimate of $235.81 million for the second quarter of the year.

The company reported an 18% increase in revenue to $238.1 million in the three months ended in June, beating a Factset consensus of $236 million. The company's revenue was up 17.9% compared to the same quarter previous year. Orders climbed to 4,033 from 3,399.

TRADEMARK VIOLATION NOTICE: This piece was originally reported by The Cerbat Gem and is the sole property of of The Cerbat Gem. The legal version of this piece can be accessed at https://www.thecerbatgem.com/2017/08/10/blue-apron-holdings-inc-aprn-given-buy-rating-at-royal-bank-of-canada.html. DekaBank Deutsche Girozentrale acquired a new position in shares of Blue Apron Holdings during the second quarter worth approximately $220,000.

Blue Apron Holdings, Inc is a holding company. The Firm is focused on providing recipes and fresh ingredients for making home cooking accessible. The Company offers under a novel business model in which it source, process, store and package meal ingredients and ship them directly to consumers. Salzberg said the company's proprietary products - like the beef from its farms - set the company apart from other retailers.

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